Kronos® Grows Revenues 19 Percent in First Quarter as Private Company
Accelerated global expansion initiative and delivery of innovative product release fuel Q3 FY07 momentum
CHELMSFORD, Mass. — Aug. 8, 2007 — Kronos® Incorporated today announced it has once again extended its lengthy record of revenue growth and profitability. In its first quarter since becoming a private company, Kronos revenues grew 19 percent to $168.7 million. Earnings before interest, tax, and amortization (EBITA) rose 45 percent to $28.9 million1. During the quarter, Kronos continued to execute on its aggressive global expansion plans; delivered version 6 of its flagship Workforce Central® suite; continued to expand its presence in talent management; and demonstrated momentum across all targeted verticals in all product and geographic areas.
"Kronos began a new, exciting chapter when we became a privately held company again," said Aron Ain, Kronos chief executive officer. "We now have increased flexibility to invest in our customers, technology, and people. And this is exactly our plan. In our third fiscal quarter, we continued to execute against our Fiscal 2007 strategic objectives in the areas of global expansion, workforce management, and talent management. Our continued success validates our strategy and the strengths of our solutions."
Global expansion
Kronos is thrusting into fast-growing markets to serve and support the global workforce management needs of multinational organizations. During the quarter, Kronos:
- Acquired Captor, a strategic move which extended Kronos' market leadership deeper into Europe. As a result, Kronos is better able to meet growing demand from multinational organizations as well as better address the needs of existing local and multinational customers in the complex European workforce management market. Captor's customer base includes thousands of multi-lingual, multi-country, and multi-sector deployments.
- Established a deeper presence in the Asia-Pacific (APAC) region by launching a subsidiary in India. Kronos' Bangalore presence positions Kronos to capitalize on growing demand for workforce management throughout the region.
- Formed a reseller agreement with Meta4 to empower organizations in Latin America to effectively manage their workforce. The relationship provides integration between Kronos' Workforce Central suite and the Meta4 PeopleNet platform. This relationship will serve customers throughout Latin America including Mexico, Central America, South America, and the Caribbean.
- Formally launched Kronos in China with a series of events in Beijing and Shanghai. During these events, Kronos introduced the concept of workforce management; outlined Kronos' China growth strategy; and unveiled a version of Workforce Central specifically tailored to the Chinese market.
Product innovation
Kronos' product revenue grew 20 percent year over year, fueled by increasing adoption of applications in the areas of scheduling, absence management, human resources and payroll, analytics, and labor activities. During the quarter, Kronos delivered version 6 of its Workforce Central suite. With Workforce Central 6, organizations have the insight and information required to manage performance and effectively optimize a global workforce. Workforce Central 6 includes:
- Enriched global capabilities, enabling executives to monitor and compare workforce performance across geographies;
- Enhanced analytics, providing improved visibility into workforce performance;
- New scheduling automation features for manufacturers, as well as an enhanced schedule assistant with a call-list feature for hospital staffing managers; and a
- Fresh and exciting new browser-based user interface, enabling easy navigation and use for the entire workforce.
In conjunction with the release of Workforce Central 6, Kronos announced availability of a new key performance indicator (KPI) that allows manufacturers to measure the effectiveness of their workforce. This new KPI, Overall Labor Effectiveness™ (OLE) measures the utilization, performance, and quality of the workforce and its impact on productive output.
In keeping with its commitment to innovation, Kronos also delivered webTA™ Mobile during the quarter. This new mobile offering extends the reach of Kronos' webTA solution to tackle complexities of managing mobile, multi-sector federal government workforces. webTA Mobile makes it possible for federal government employees to remotely enter time, attendance, and leave using mobile devices.
Talent management achievements
Kronos entered the talent management space through its acquisition of Unicru, Inc. in August 2006. The former Unicru solution is now Workforce Acquisition™. During the quarter in the area of talent management, Kronos:
- Assessed nearly 6,000,000 job applications through its Workforce Acquisition solution.
- Launched its Strategic Sourcing Service, a proprietary method for understanding local job applicant sourcing dynamics. This new approach helps organizations maintain a steady flow of capable, qualified job applicants.
- Released several assessment-related deliverables, including: a validated, second-generation casual dining front-of-house and heart-of-house assessment, and a Spanish version of its frontline healthcare assessment.
- Launched behavioral interview training programs targeted at field-based interviewing for hourly and site-level management positions.
Cross-vertical momentum
Customer wins secured during the quarter included:
- Huntington Memorial Hospital, a 525-bed community hospital in California, selected Kronos for Healthcare based on the value of centralizing its human resources, payroll, and absence management functions using a hosted/managed services offering targeted at the healthcare market.
- Swissport, one of the world's leading providers of ground handling services, signed an upgrade and product add-on agreement to effectively manage its 4,000-employee workforce across six locations in the UK.
- The Audubon Institute, one of New Orleans' top non-profit organizations, implemented Kronos' selection and hiring solution to help re-staff and revitalize its museums and parks devastated by hurricane Katrina.
- The Venetian Resort Hotel Casino selected Kronos for Gaming for 15,000 employees. The high-end gaming resort selected the industry-specific solution to gain visibility into its diverse and competitive workforce. Kronos' strong presence in other major gaming operations and reputation as the leader in workforce management solidified the selection.
- American Woodmark, one of the largest cabinet manufacturers in the U.S., extended its relationship with Kronos by selecting Kronos for Manufacturing. Kronos' expertise and manufacturing-specific solutions solidified the company's decision to purchase labor activities and absence management modules.
Kronos' third quarter Fiscal 2007 results mark the company's 110th consecutive quarter of year-over-year revenue growth and 81st consecutive quarter of EBITA profitability2.
About Kronos Incorporated
Kronos Incorporated empowers organizations around the world to effectively manage their workforce. At Kronos, we are experts who are solely focused on delivering software and services that enable organizations to reduce costs, increase productivity, improve employee satisfaction, and ultimately enhance the level of service they provide. Kronos serves customers in more than 60 countries through its network of offices, subsidiaries, and distributors. Widely recognized as a market and thought leader in managing the workforce, Kronos has unrivaled reach with more than 30 million people using a Kronos solution every day. Learn more about Kronos at www.kronos.com.
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